Printer Friendly

SDRC Reports 50% Increase in Net Income Revenue up 33%.

MILFORD, Ohio--(BUSINESS WIRE)--July 22, 1997--Structural Dynamics Research Corporation (NASDAQ:SDRC), developer of the I-DEAS(TM) and Artisan(TM) design automation software and Metaphase(TM) product data management software, today reported revenues totaling $88.7 million for its second quarter ended June 30, 1997, a 33% increase over the same quarter last year. Net income was $9.9 million, an increase of 50% compared to the same period last year. Earnings per average common share outstanding improved to $0.28 versus $0.19 for the second quarter of 1996.

For the six months ended June 30, 1997, SDRC's revenue was $169.5 million, up 29% compared to the first six months of 1996. Net loss for the six months ended June 30, 1997 including acquisition related costs of $20.9 million incurred in the first quarter of 1997 was $2.5 million or $(0.08) per average common share outstanding compared to net income of $13.0 million or $0.37 per share for the same period last year. Net income excluding Metaphase acquisition costs was up 41%.

"I'm happy to be joining SDRC during its highest revenue quarter ever, and look forward to contributing to even stronger results in the future," stated new chief executive officer William Weyand. "We are particularly pleased to report a 134% increase in total Metaphase sales and services revenue compared to the same quarter of 1996, while our I-DEAS product sales and service revenue grew 21% over the same quarter last year on a much higher base. Sales of our new Artisan Series software have been on plan since its introduction last February. We will be establishing even more focused strategies and action plans to expand license sales going forward. As anticipated, our maintenance and services revenues grew nicely as a result of our emphasis on building long-term strategic customer partnerships with our clients and our Metaphase acquisition earlier this year."

"We booked significant I-DEAS orders in the quarter from Ford, Nissan, Matsushita Electric, and Skoda and major Metaphase license orders from Mack Trucks, Northrop Grumman, and Motorola. We also continue to complement our direct Metaphase delivery and support services capability through partnerships with systems integrators such as Siemens Business Services, Groupe Bull, Intergraph, Origin, EDS, and Hewlett Packard."

"While our $7.5 million increase in expensed research and development underscores our commitment to maintaining and improving our technical product advantages, we will now focus on more actively marketing and distributing our technology on a worldwide basis. Our balance sheet remains strong with cash and marketable securities totaling over $106 million and no debt, record deferred revenue, days sales outstanding at 67, and a significant net reduction in the quarter of our capitalized software asset."

"Perhaps the most notable innovation to parametric feature-based modeling since its introduction a decade ago" is the way Marc Halpern of D.H. Brown describes SDRC's new VGX(TM) three-dimensional Variational Geometry feature in I-DEAS Master Series 5, just released in the second quarter. I-DEAS Master Series 5 provides key enabling technologies for companies developing electronic prototypes of complete vehicles as well as highly complex products from the aerospace, electro-mechanical, and industrial equipment industries.

"We can now use Master Series in all aspects of digital prototype development for complete vehicles, which is key to achieving our Ford 2000 goals," said Richard Riff, Manager of Ford Motor Company's C3P Project Office. SDRC remains one of only a few companies with products capable of generating digital mock-ups for an entire auto design. SDRC anticipates that these added features should bolster new I-DEAS license sales in future quarters.

The consolidated statement of income for the quarters ended and year to date as of June 30, 1997 and 1996 follow along with balance sheets as of June 30, 1997 and December 31, 1996.

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially from those projected, including the timely availability and acceptance of new products, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Company's SEC reports, including the Company's most recent reports on Form 10-K and 10-Q.

http://www.sdrc.com/

Note to Editors: SDRC and Metaphase are registered trademarks, and I-DEAS, I-DEAS Master Series, Artisan and Metaphase Series 2 and VGX are trademarks of Structural Dynamics Research Corporation. All other trademarks and registered trademarks belong to their respective holders. -0-
 STRUCTURAL DYNAMICS RESEARCH CORPORATION

 CONSOLIDATED STATEMENT OF INCOME
 (Unaudited)
 (000, except per share data)

 Three Months Ended Six Months Ended
 June 30, June 30,
 _________________ _________________
 1997 1996 1997 1996
 _______ _______ _______ _______
Revenue:
 Licenses $42,237 $36,119 $ 83,395 $ 69,827
 Maintenance and services 46,441 30,550 86,147 61,891
 _______ _______ _______ _______

 Total revenue 88,678 66,669 169,542 131,718

Cost of revenue 32,668 21,103 62,707 40,240
 _______ _______ _______ _______

Gross profit 56,010 45,566 106,835 91,478

Operating expenses:
 Selling and marketing 25,555 25,887 49,711 52,289
 Research and development 13,877 6,426 25,415 14,281
 General and administrative 4,877 3,929 9,064 8,275
 Purchased in-process
 research and development 0 0 20,850 0
 _______ _______ _______ _______
 Total operating
 expenses 44,309 36,242 105,040 74,845
 _______ _______ _______ _______

Operating income 11,701 9,324 1,795 16,633

Equity in earnings (loss) of
 affiliates 80 (454) 80 541

Acquisition costs 0 1,102 0 1,102

Other income 1,029 867 1,557 708
 _______ _______ _______ _______

Income before income taxes 12,810 8,635 3,432 16,780
Income tax expense 2,932 2,028 5,954 3,817
 _______ _______ _______ _______

 Net income (loss) $ 9,878 $ 6,607 $ (2,522) $ 12,963
 _______ _______ _______ _______
 _______ _______ _______ _______

Net income (loss) per share $ .28 $ .19 $ (.08) $ .37

Common and common equivalent
 shares 35,361 35,189 33,488 34,850


 STRUCTURAL DYNAMICS RESEARCH CORPORATION

 CONSOLIDATED BALANCE SHEET

 (000 omitted)

 June 30, December 31,
 1997 1996
 _________ _________
 (Unaudited)
Assets:

 Cash and cash equivalents $ 80,816 $ 71,278
 Marketable securities 17,224 18,502
 Accounts receivable trade 66,284 61,743
 Accounts receivable other 13,913 7,464
 Prepaid expenses 9,802 7,918
 _________ _________

 Total current assets 188,039 166,905

 Marketable securities 8,883 10,509
 Property and equipment, net 23,752 20,945
 Computer software construction
 costs, net 31,524 28,614
 Other assets 10,318 11,106
 _________ _________

 Total assets $262,516 $238,079
 _________ _________
 _________ _________

Liabilities and shareholders' equity:

 Current liabilities $120,131 $100,386
 Other long-term liabilities 7,679 8,394
 Shareholders' equity 134,706 129,299
 _________ _________
 Total liabilities and
 shareholders' equity $262,516 $238,079
 _________ _________
 _________ _________




CONTACT: Structural Dynamics Research Corporation, Milford

Jeffrey J. Vorholt, 513/576-2138
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jul 22, 1997
Words:1115
Previous Article:MASSBANK Completes Glendale Acquisition.
Next Article:UtiliCorp Subsidiary Selected to Modernize University's Power System.
Topics:


Related Articles
SDRC Reports 92 Percent Increase in Profits.
SDRC posts record quarter.
SDRC reports record quarter and year; posts 1995 EPS of $0.65 adjusted.
SDRC reports first quarter results; most profitable quarter ever.
SDRC reports 30% revenue growth; EPS at 22 cents before 3 cents acquisition charge.
SDRC reports $1.00 EPS from operations in 1996; operating income up 70%.
SDRC Reports Net Income Up 40%; EPS $0.33.
SDRC Reports $0.28 EPS; Nissan, Renault Announcements Are Quarter Highlights.
SDRC Reports First $100 Million Quarter; Revenues Up 17%.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters